Russia. Parliament voted for raising VAT on palm oil to 20%

The parliament has adopted in third reading a Tax Code amendment excluding palm oil from the preferential VAT regime of 10% and introducing a VAT of 20% for this product. 

At the moment, any vegetable oil is charged with a reduced VAT tariff of 10%.

Moreover, the parliament recommends that the government, when drafting amendments to the FY2019 Budget and shaping the Budget for next fiscal year, allocate the additional budgetary revenue resulting from the increased 20% palm oil import VAT rate for enhancing productivity of dairy cattle operations under the 2013-2025 state program for agriculture development and regulation of the agricultural product, commodity and food markets. The purpose is to prevent growth in consumer prices for essential foods.

The cancellation of the reduced rate is expected to bring an additional RUB 4.5-5 Bl of revenue a year, reports UkrAgroConsult.

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Please be reminded that on September 5, UkrAgroConsult will host a major meeting point of the oilseed industry operators – the 7th International Conference “Black Sea Oil Trade-2019” in Hilton, Kyiv, Ukraine.

‘Black Sea Oil Trade’ conference annually brings together key players of the global agribusiness at the start of a new oilseed season. The goal of the conference is to discuss prospects and directions of the Black Sea and global oilseed market development, exchange international contacts, share recommendations for adapting business strategies in the changing market and global trade.

More than 250 delegates from 25+ countries attend the conference annually. Conference participants are represented by producers and crushers of oilseeds, traders, enterprises for deep processing of vegoils, investment companies, banks, legal, shipping, brokerage, insurance, surveyor and other companies.

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